HUNDREDS of jobs could be lost if plans to cut carbon emissions by setting up biomass power plants go ahead unchecked.

Chirk-based chipboard manufacturer Kronospan fears that the “well-meaning plans” to build wood burning electric power stations may force it out of business.

The firm has already had to make cutbacks during the recession, seeing its work force fall from 600 18 months ago to the current 560.

Now it faces being squeezed out of existence, director of sawmilling in Chirk Gavin Adkins believes.

He said: “We’ve been lobbying politicians about the unintended consequences of the renewable energy programme.

“It will mean using 30m tonnes of timber and the UK produces just 10m. So we’re seeing a heavily subsidised industry stepping in displacing what’s already there.

“In North Wales it could mean more than 1,000 job losses overall when you take into account all the people connected to Kronospan. “What it’s trying to achieve is low carbon emissions but you increase 1,500kg per tonne of timber through burning.”

The concerns were raised in the Welsh Assembly this week by Conservative AM, Mark Isherwood. He said: “Kronospan in Chirk if displaced, would lead to an increase in net emissions by 2m tonnes of carbon dioxide per annum, and Kronospan is a vital employer.

“Although the Welsh Government only has devolved responsibility for smaller energy plants, it should be lobbying on this issue at UK and EU level.”

Mr Isherwood also wants a ban on landfill for waste timber so that this, rather than virgin timber on which the wood panel industry relies, can be used for energy production.